Alphabet drops after earnings

The shares of the parent company of Google – Alphabet traded lower in after-hours trading on Monday. The online advertising giant reported revenue of $26.01 billon, which represents roughly a 21% increase year-over-year.

Affected by the EU anti-trust case, in which the company was fined $2.74 billion for prioritizing their own shopping service over the shopping services of the competitors, the reported profit fell sharply.

The main worry investors have are the rising traffic acquisition costs, which came in at $5.09 billion, higher than the estimated $4.75 billion. The CFO of Alphabet – Ruth Porat said that the company is focusing on “dollar growth” in revenue and operating income, “not margins”.

Reportedly, YouTube has been one of the main drivers of revenue growth this quarter, yet reports of the individual performance of the website were nowhere to be seen in the earnings release.